Accounting standard followed by builder

This query is : Resolved

Dinesh (Querist)
Follow

25 July 2015 As per AS 7 Revenue & Cost should be recognized as per estimated revenue & Estimated cost of whole project.but in case of builder how can we determine
the value of unsold flats if the per sq feet rate is fluctuating(i.e. diff. rate is charged to different customers). whether AS 7 will be applicable in above case or can we make proportionate of revenue & cost only on agreement basis and cost incurred basis.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

25 July 2015 Once it is consturcted then follow AS 9 revenue recognition

Dinesh

Dinesh (Querist)
Follow

25 July 2015 But my question is during Construction period Which AS to be follow? If AS 7 is to be follow how to determine the value of unsold flats if per sq. feet rate is fluctuating as to arrive at total revenue & total project cost?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

25 July 2015 you need to follow proportinate completion method in case flats are under construction as per as 7.

cost incurred in fy needs to be booked while under construction

Dinesh

Dinesh (Querist)
Follow

25 July 2015 Ok sir, But what about revenue whether we have to book revenue on POCM method of only sold flats or on both(Sold Flats & Unsold flats). if both how to value unsold flats?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

25 July 2015 AS 7 PCM says both income and exp in fy msut be recorded as per PCM method.

Message likes : 1 times

Dinesh

Dinesh (Querist)
Follow

25 July 2015 OK agreed But sir how to value as per PCM i.e total estimated revenue & cost or we have to take value of sold flats and apply percentage on that?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

kopparapu bheemarao

Rajesh Surapaneni

sweta sharma

T Ramachandran

Pratap Kumar De

Subscribe Now

Accounting standard followed by builder

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

CA Final

GST CONSULTANT

Accountant

GST CONSULTANCY